Quad Graphics (second from the left on the above chart, courtesy of RRD's 2013 investor presentation) is acquiring Brown Printing, which is part of the most right column, representing Bertelmann's US activities.

We will see if this is only an exit from the consolidating US catalog and magazine market for Bertelsmann or whether there are greener pastures elsewhere for the Arvato book business as well. In any case, it is probably not good news for equipment makers if one can buy three plants full of well maintained production equipment for $100 million.

The press release talks about an "adjusted EBITDA after anticipated synergies"-multiple of less than four, let's say $25 million plus. That probably means the three substantial factories with their over 1,800 employees generate quite a bit less than that today, which tells us something about the continuing price pressure in the industry.

When Quad opened,one of my relatives was an early customer,and his Canoe and Great Lakes Magazines were printed on a Baker Gemini CIC Press.
Quad consistently upgraded its machinery in all areas for efficiency and reproductive quality,which drove their dynamic growth.
Today advertisers in many markets still need a source to reach those hobbyists in the many,many niche markets,and I am sure Quad and Joel will provide the cost and quality advertisers need to reach the buyers of their products.
I receive 40 publications a month,and few lend themselves to electronic media.The digital editions are more time consuming and advertising is less impressive and a nuisance electronically .
So while the total print market may decline,Quad will be the King of The Hill in sectors where people buy things.

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